November 2023 Analysis: Federalism
Koshi Province is once again in turmoil after the Chief Minister decided to appoint ministers from parties outside the ruling coalition. Provinces are not happy at the pace in which devolution of power is taking place. The federal government has stalled on critical legislations required to hand over more power to the provinces.
Provincial governments in Nepal are unhappy with the federal government's delay in implementing legislations that would give them authority to regulate police forces and civil services. As per the constitution, provinces have the right to have their own police and civil service, but the federal government has not yet passed the necessary legislation or taken steps to transfer control.
All seven provincial governments are now united in putting pressure on the federal government as provinces are unable to function effectively without the necessary resources. The provinces have threatened of protests if the federal government doesn't meet their demands by December 8th. Prime Minister Prachanda has committed to addressing their demands.
The possible consequences of inaction are stalled implementation of federalism, continued inefficiency and lack of accountability in provincial governance. Nepal's transition to federalism has been slow and uneven, facing numerous challenges. The central government's reluctance to devolve power and enact key legislation has led to political instability and discontent. However, some positive developments, such as increased representation of marginalized groups, offer hope for the future of federalism in Nepal.
The UML argues that Karki's move breaches a commitment to a two-party government consisting of the Congress and UML only. The pullout could lead to the collapse of the government and the possibility of a snap election in the province. Karki justifies his decision by claiming he wants to form a consensus government reflecting the federal coalition.
Amid this political imbroglio, Karki presented a budget for the third time in the current fiscal year focusing on agriculture, tourism, and human development. The budget replacement bill showcased the conflict of interest between CPN-UML and RPP parties regarding the budget allocation.
The Koshi Province faces challenges in nominating ministers for six different portfolios. Also, the position of Speaker has been vacant for six months. The political maneuvering and pressure from the central level have severely handicapped government formation in Koshi for almost ten months. Repeated interventions by the Supreme Court in forming the provincial government highlight the fragility of the system.
The Chief Minister's Employment Program in Karnali Province has been plagued by irregularities and mismanagement. The budget is often misused and there is a lack of transparency and accountability. The program has become a way for the government to provide jobs for its supporters; beneficiaries are often selected on the basis of political connections.17
Similarly, millions of taxpayers’ money allocated for building cold storage facilities in Lumbini Province have been misused due to poor planning and execution. The "Smart Krishi" program aimed to construct 23 cold storage facilities, but many remain unused or have closed down. Lack of feasibility studies, insufficient funding, and technical issues have plagued the project. Several stakeholders, including former lawmakers, call for proper feasibility studies and technical expertise to avoid future losses.
Proper planning and technical expertise are needed for future projects to be effectively implemented in the provinces.
Timeline of major events
Date |
Events |
November 9th |
The Madhesh Government gives the federal government a 30-day deadline to make changes in the police force bill |
November 26th |
The internal affairs ministers from seven provinces meet with Prime Minister Pushpa Kamal Dahal to discuss the Province’s concern |
November 25th | Koshi Province issues budget replacement bill |
Provinces dissatisfied with the practice of Federalism
Provincial governments in Nepal are unhappy with the federal government's delay in implementing legislations that would give them authority to regulate police forces and civil services. As per the constitution, provinces have the right to have their own police and civil service, but the federal government has not yet passed the necessary legislation or taken steps to transfer control.
All seven provincial governments are now united in putting pressure on the federal government as provinces are unable to function effectively without the necessary resources. The provinces have threatened of protests if the federal government doesn't meet their demands by December 8th. Prime Minister Prachanda has committed to addressing their demands.
The possible consequences of inaction are stalled implementation of federalism, continued inefficiency and lack of accountability in provincial governance. Nepal's transition to federalism has been slow and uneven, facing numerous challenges. The central government's reluctance to devolve power and enact key legislation has led to political instability and discontent. However, some positive developments, such as increased representation of marginalized groups, offer hope for the future of federalism in Nepal.
Koshi Province Revises Budget
The CPN-UML, the largest party in the Koshi Provincial Assembly, is on the brink of exiting the coalition government. The political development follows Chief Minister Kedar Karki’s decision to expand the cabinet by inducting ministers from the CPN (Maoist Centre) and the CPN (Unified Socialist), ignoring the UML's objections.The UML argues that Karki's move breaches a commitment to a two-party government consisting of the Congress and UML only. The pullout could lead to the collapse of the government and the possibility of a snap election in the province. Karki justifies his decision by claiming he wants to form a consensus government reflecting the federal coalition.
Amid this political imbroglio, Karki presented a budget for the third time in the current fiscal year focusing on agriculture, tourism, and human development. The budget replacement bill showcased the conflict of interest between CPN-UML and RPP parties regarding the budget allocation.
The Koshi Province faces challenges in nominating ministers for six different portfolios. Also, the position of Speaker has been vacant for six months. The political maneuvering and pressure from the central level have severely handicapped government formation in Koshi for almost ten months. Repeated interventions by the Supreme Court in forming the provincial government highlight the fragility of the system.
Provincial funds mis-utilized in Lumbini and Karnali Province
The Chief Minister's Employment Program in Karnali Province has been plagued by irregularities and mismanagement. The budget is often misused and there is a lack of transparency and accountability. The program has become a way for the government to provide jobs for its supporters; beneficiaries are often selected on the basis of political connections.17
Similarly, millions of taxpayers’ money allocated for building cold storage facilities in Lumbini Province have been misused due to poor planning and execution. The "Smart Krishi" program aimed to construct 23 cold storage facilities, but many remain unused or have closed down. Lack of feasibility studies, insufficient funding, and technical issues have plagued the project. Several stakeholders, including former lawmakers, call for proper feasibility studies and technical expertise to avoid future losses.
Proper planning and technical expertise are needed for future projects to be effectively implemented in the provinces.
CESIF Nepal